For a given decrease in supply, the condition of demand that will result in no change in quantity is when demand is
A)elastic.
B)inelastic.
C)perfectly elastic.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

If there is a decrease in supply and demand is perfectly inelastic, there will be no change in quantity. This is because consumers are willing to pay the same price regardless of the change in supply, so there is no need for the price to change to balance the market. Therefore, option D (perfectly inelastic) is the best choice.

For a Given Decrease in Supply, the Condition of Demand